Post Utme Joseph Ayo Babalola University 2024 Economics Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2024 Economics Objective / Multiple Choice
Question 21 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective

Consider a small open economy with a fixed exchange rate. The country's trade balance is in surplus, and the current account is also in surplus. What is the likely effect on the country's GDP?

Answer Options

Correct Answer A. The GDP will increase due to the increase in exports.
B. The GDP will decrease due to the decrease in imports.
C. The GDP will remain unchanged as the trade balance is in surplus.
D. The GDP will increase due to the increase in government sp\ending.
Correct Answer
A
Correct Option:
The GDP will increase due to the increase in exports.

About This Question

This is Post Utme Joseph Ayo Babalola University 2024 Economics Question 21. It is one of the objective questions from the 2024 Post Utme Joseph Ayo Babalola University Economics examination.

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